Trump says trade deal with Britain will be "full and comprehensive"

Investing.com - U.S. President Donald Trump has said that a trade deal with the United Kingdom (TADAWUL:4280) would be "full and comprehensive," as the two countries were tipped to soon sign an agreement.

"The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," Trump said in a post on his Truth Social platform on Thursday. "Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!"

The New York Times (NYSE:NYT) had earlier reported that the deal will be with Britain, citing three people familiar with the plans. Details of the agreement were not immediately clear, although trade talks between the U.S. and the U.K. have covered lower British tariffs on American goods, and vice-versa.

It was also not clear whether the deal had been finalized or was a framework agreement to set the stage for more negotiation, the NYT report said.

The deal would be the first major trade agreement after Trump unveiled his reciprocal tariffs in early-April. Trump later delayed the elevated levies for 90 days, claiming that the move was largely a bid to bring countries to the negotiating table.

Trump administration officials have reportedly been engaged in bilateral trade talks with several major economies over the past month, although the president said earlier this week that he was in no hurry to sign any deals.

The U.K. was not subject to any of Trump’s reciprocal tariffs, given that the country imports more from the U.S. than it sells to it. But it still faces a 10% universal tariff, as well as heavy sectoral tariffs, such as a 25% duty on steel, aluminum, and automobile imports.

The NYT report said Trump’s administration was not considering removing the 10% tariff as part of a trade deal.

"If there is no further breakthrough on the U.S. baseline tariff, that would significantly limit the economic upside from continued negotiations and further concessions," said Allan Monks, Economist at JPMorgan, in a note to clients.

The discussions with the U.K. comes as the Trump administration prepares to engage in separate talks with China. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are due to meet their Chinese counterparts in Switzerland this weekend.

However, Trump has suggested he will not lower his massive tariffs of at least 145% against China. Beijing, which has imposed its own reciprocal tariffs of 125% on U.S. imports, has said that while it plans to "re-engage" with the U.S., it will "never agree" to a deal if Trump officials attempt to use the talks as a "cover" to continue with heightened tariffs China considers to be a form of "coercion and blackmail".

(Ambar Warrick contributed reporting.)